Coronavirus concerns caused losses in the stock markets could mean that the Yen would still be on track to show further momentum. Even with some delay, most currencies lose momentum against the safe-haven currency and we picked the USD for now. The USD/JPY presents a safe SELL bet as the greenback stopped its bullish course after investors sharply raised bets that the growing fallout from the coronavirus outbreak would prompt U.S. interest rate cuts.
We sold USDJPY at 110.58 with SL at 111.20 and TP at 109.70. Should the market fall further here a big bearish reversal pattern on the monthly chart could show further demand as well.
